MORNING YAPS

Many lenders' troubled loans equal 5% of holdings
Former regulators, analysts and other industry insiders said the high percentage of nonperforming loans held by more than 150 publicly traded banks could threaten their survival. "At a 3% level, I'd be concerned that there's some underlying issue, and if they're at 5%, chances are regulators have them classified as being in unsafe and unsound condition," said Walter Mix, a former commissioner at the California Department of Financial Institutions. Bloomberg (8/14)

Many U.S. lenders' troubled loans equal 5% of holdings
Former regulators, analysts and other industry insiders said the high percentage of nonperforming loans held by more than 150 publicly traded banks in the U.S. could threaten their survival. "At a 3% level, I'd be concerned that there's some underlying issue, and if they're at 5%, chances are regulators have them classified as being in unsafe and unsound condition," said Walter Mix, a former commissioner at the California Department of Financial Institutions. Bloomberg (14 Aug.)

Banks start to unload billions of dollars in troubled mortgages:
Wells Fargo and other large financial institutions in the U.S. are quietly selling troubled residential mortgages to hedge funds, private-equity firms and other participants in the distressed-mortgage market. The move comes as the government pressures lenders to rid their balance sheets of such troubled debt. Distressed-mortgage players expect the loans to generate profit after they are modified, sources said. The New York Times/DealBook blog (13 Aug.)

U.S. retail sales post surprise 0.1% drop
Breaking a three-month trend of increasing consumer spending, retail sales dropped 0.1% in July, the U.S. Commerce Department said. The boost triggered by the government's "Cash for Clunkers" program was not enough to make up for plummeting sales at department stores. Bloomberg (13 Aug.)

Stores see frugality as "new normal" for U.S. consumers:
Wal-Mart and Kohl's managed to produce second-quarter earnings that beat estimates from Wall Street analysts, but that does not mean retailers expect Americans to return to their old, free-spending ways. "Our customers are more disciplined in their spending," said Wal-Mart President and CEO Mike Duke. "There is a new normal now where people are saving more, consuming less and being more frugal and thoughtful in their purchases." The Associated Press (14 Aug.)